Best Forex Trading Strategy - The One the Pro Traders Use for Huge FX Profits!

Enclosed we will outline the best Forex trading strategy, for making big profits quickly and the good news is - this strategy is easy to understand, can be learned quickly and is the one the real pro traders use, to pile up huge gains and you can use it too - let's take a look at it in more detail.

This strategy is not popular with new traders and we will look at why in a moment but first, let's look at the logic it's based on and why it works.

On any currency trading chart, you will see big price trends and you will also see that many last a long time. In fact the best trends, last for weeks, months or even years. This strategy is based on how all big price trends start and continue which is in the following way:

Any Bullish Price trend, will start by breaking up through resistance to new chart highs and the trend will continue to do this, as the trend matures and unfolds. If you want to get into all the best trends you need to focus on buying high odds breakouts,through strong chart resistance levels.

The above strategy is both simple and logical and if you look at any currency pair you will see how profitable it is - so why do most traders ignore this strategy?

Most traders ( especially novice traders) are obsessed with predicting the exact low of a trend change but this is doomed to failure, because you have to predict and that's really just hoping or guessing. These traders continually buy into support and hope the level holds, most times it doesn't and they lose.

The trader who likes to get in low and sell high cant take a breakout, he sees the move happen but can't buy it because, he thinks he has missed the start of the move and wants to get in at a better and lower price so what does he do?

He waits for a pull back in price but he waits in vain and the reason is simple - the best breakouts simply don't come back they accelerate away from the breakout point and the trader who waited for the pull back misses a huge profit opportunity.

The professional trader doesn't mind missing the exact low, his focus is on having the odds on his side (which a breakout gives him) and focuses not on what he's missed but the huge profit ahead of him.

Breakout trading, involves looking at resistance levels traders feel are important which have been tested a few times and in terms of breakout trading - the greater the number of tests the better the breakout will tend to be when it eventually occurs. In addition, the wider the tests are apart the better in terms of time.

Generally I look to trade a minimum of six tests and two of these tests, should be at least six weeks apart.

Breakout trading will work, as long as markets trend and of course this will never change and don't' worry that not many traders trade breakouts, because the bulk of traders lose. If you want to win you want to be in the minority so join the elite minority who make money and use, this Best Forex Trading Strategy for making gains in just 30 minutes a day.

Best Forex Trading Indicators - 4 of the Best Indicators For Bigger Profits

Many traders use numerous indicators - but over the last 22 years I have four favourites and I will share with you here and they have worked for me and they will work for you. Let's look at them...

Today, good old bar charts have gone out of fashion but I think their essential and use them in conjunction with the indicators below. I don't use candlestick charts, there is a big myth there better but there not. If you like using them, then do so but the relationship between the daily range open and close is obvious.

Here are the four indicators and you can read more about them in our other articles. There available on most free chart services and will take you around 30 minutes each to learn and then, your all set to start using them on your forex chart and start making bigger profits.

1. The Stochastic

For me this is the ultimate timing tool.

Trading stochastic crossovers with bullish or bearish divergence, into chart resistance or support, from overbought or oversold levels, is simply the best market timing tool. If the stochastic crosses from chart highs or lows the signal is even more powerful.

2. Relative Strength Index

This gives you the strength of the trend and when RSI weakens or strengthens, when the trend is still up or down, especially from over bought or oversold levels, you have advance warning of a contrary move.

When combined with the stochastic, you have a great combo for better market timing.

3. The Bollinger Band

Gives you the volatility of price and you simply need to understand it to make money at forex trading.

I love using pops to the outer band, near chart support and resistance, to look to take profit or, initiate a contrary trend. Also in a strong trending market, dips back to the centre band ( the moving average) are great value areas to look to add extra positions in a strong existing trend.

You don't time with them - you look for areas in line with support and resistance to trade into.

4. Moving Averages

Simple moving averages are great and I have just mentioned the mid band of the Bollinger band, which is in fact a simple moving average, to buy and sell back to in existing trends.

In strong trends dips to the 18 - 25 day moving average are a great place to load in new trades.

Another excellent time period is the 40 day moving average which acts as the last line in a strong trend with nearby support or resistance. In strong trending moves we like to trail our stop behind this level and it keeps us in the long term trends.

When trading with the above and support and resistance lines you will get market timing for your trading signals.

There are some other useful technical indicators and we like the ADX line and the MACD too - but the above are the four we use all the time. If you spend 30 minutes on each one you will soon have four powerful indicators that you can use in your own forex trading strategy, to seek currency trading success with.

Check them out, they're simple, powerful and can work for you too with a little practice.